The correct answer is C. All mass in the Universe was once energy, and energy does not take up space.
This statement aligns with the principles of the Big Bang theory, which suggests that the Universe originated from an extremely hot, dense state and has since expanded. In the earliest moments of the Universe, all mass-energy was concentrated in a single point, and as it expanded, it transitioned into matter. In physics, mass and energy are interchangeable as described by Einstein's equation \(E=mc^2\), which implies that energy can be converted into matter, and vice versa. Thus, before the Big Bang, the universe existed in a form where traditional notions of "space" as we understand them today did not apply in the same way.